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Government to plan selling 51 per cent stake in Air India…!

Air India

According to Bloomerg Market , India is considering selling a majority stake in Air India to a strategic partner after a $3.6 billion bailout failed to turn around the loss making national carrier, people with knowledge of the matter said.

The proposal includes reviving Air India within five years of selling a 51 percent stake, the people said, asking not to be identified as the information isn’t public. Talks are at an initial stage and presentations have been made to the finance ministry and the prime minister’s office, they added.


The government isn’t planning to sell 51 percent stake in the carrier, Civil Aviation Secretary R.N. Choubey said in New Delhi. D.S. Malik, a spokesman at the Ministry of Finance declined to comment. Neither did Dhananjay Kumar, Air India’s spokesman.

Prime Minister Narendra Modi’s administration will have to tackle the airline’s about $7 billion of debt to make Air India attractive to investors, according to Mark Martin, founder of Dubai-based Martin Consulting LLC. In comparison, Deutsche Lufthansa AG has less debt while its revenue is about 11 times that of the Indian carrier. Air India has been unprofitable for a decade with taxpayers bailing it out in the past six years.


“It’s a welcome step but premature,” said Martin. “The government should first set its house in order by amortizing and restructuring the debt before it tries to find someone who will buy 51 percent.”

India’s finance ministry wants the plan to be discussed in detail to avoid a situation where there are no buyers after the offer is announced, the people said.


The carrier’s share in the local market has shrunk to 14 percent from 35 percent a decade back, placing it third in the national ranking. The company made an operating profit of about 1 billion rupees ($15 million) in the year through March 2016, aided by a drop in oil prices. It still posted a net loss of 38.4 billion rupees, according to the government.


He is an aviation journalist and the founder of Jetline Marvel. Dawal gained a comprehensive understanding of the commercial aviation industry.  He has worked in a range of roles for more than 9 years in the aviation and aerospace industry. He has written more than 1700 articles in the aerospace industry. When he was 19 years old, he received a national award for his general innovations and holds the patent. He completed two postgraduate degrees simultaneously, one in Aerospace and the other in Management. Additionally, he authored nearly six textbooks on aviation and aerospace tailored for students in various educational institutions. jetlinem4(at)